TRP Financial Services Report

Today marks the 4th anniversary of the signing of the Dodd Frank Wall Street Reform and Consumer Protection Act. While last week saw the usual suspects hold the type of “look back” analysis one would expect on such occasion, Better Markets marked the occasion by highlighting how the public still doesn’t trust “big banks,” believes the markets are rigged, and favors stricter regulations. Interestingly, these polling results dovetailed with comments Senator Dodd made at a Bipartisan Policy Center event, where he noted a growing convergence by the far left and the far right against large companies in the financial services space.

The bill’s namesake also indicated that he didn’t think the time was ripe for opening up Dodd-Frank to amendment in the near future, not because the law is perfect, but rather because today's hyper-partisan political environment even common-sense tweaks would be used by opponents of the law as an opportunity to overturn the measure. We wonder if a Chairman Shelby would concur.

Looking ahead, the House is expected to take a series of measures, including one that would require colleges and universities that receive federal aid to enhance the financial counseling their students receive. While earlier versions of the week’s floor schedule included possible consideration of a TRIA proposal, it now appears that the bill is not coming up this week. And this week the Senate is set to take up competing versions of short term patch’s for the soon to be depleted Highway Trust fund. With the fund set to reach precipitously low levels in mid-August, the Senate is expected to approve the version passed by the House last week.

Further out, the scent of jet fuel begins wafting into the consideration as the August recess nears. Both Houses are expected to leave for five consecutive weeks as early as August 1st.

The full edition of this week's Thorn Run Partner's Financial Services Report is available here.